Nexon Games Co Ltd

Nexon's capital structure shows a debt-to-equity ratio of 0.32, indicating a conservative leverage profile. The company holds KRW 100.4 billion in cash and equivalents, which is 22.8% of total assets, providing strong liquidity coverage. However, free cash flow is negative at KRW -9.5 billion, driven by capital expenditures of KRW -3.9 billion and operating cash flow of KRW 4.3 billion.

Profitability metrics show significant underperformance relative to industry norms. Return on equity is -4.21%, and return on assets is -2.48%, both well below the Software industry's median positive returns. Operating income is negative at KRW -8.4 billion, and net income is KRW -10.0 billion, reflecting a challenging operating environment.

Geographic and segment exposure is not explicitly disclosed in the latest financials, but the company's primary revenue source is its online and mobile gaming platforms. No material revenue concentration is reported, though the absence of segmental breakdowns limits visibility into geographic or product-specific performance.

Growth trajectory is mixed. While operating cash flow remains positive, the company's net income and operating income are both negative. Analysts project a mean price target of KRW 14,000, with a median of KRW 14,000, suggesting limited upside from current levels. No significant revenue growth is indicated in the latest period.

Risk factors include the company's negative net income and operating income, which could pressure liquidity if cash burn accelerates. Dilution risk is assessed as low, with no immediate filing-based flags detected. However, the negative free cash flow and capital expenditures suggest potential future financing needs.

Recent filings and transcripts do not indicate material events affecting the company's operations or financial position. Analysts have issued one strong-buy and one hold recommendation, with no buy or strong-sell ratings, suggesting a cautious outlook.

Analysts project 47.1% upside to a mean price target of 14,000 KRW, signaling strong institutional confidence in future recovery.

Revenue demonstrated robust growth with a 29.8% CAGR over the four-year period ending in fiscal year 2026.

The company generated substantial free cash flow of 38.1 billion KRW in fiscal year 2025 before the recent downturn.

Dilution and liquidity risks are assessed as low, suggesting stable capital structure and adequate market trading depth.

Net income peaked at 31.4 billion KRW in fiscal year 2025, indicating prior strong profitability before recent losses.

Revenue contracted sharply by 30.0% year-over-year in fiscal year 2026, signaling severe demand destruction or market share loss.

The company faces high credit risk, potentially complicating access to capital or increasing borrowing costs during this downturn.

Revenue KRW 39.29B, −18,7% YoY; Operating income −983,1% YoY.

• ▍Revenue KRW 39.29B, −18,7% YoY
• ▍Operating income −983,1% YoY
• ▍Net income −1 024,8% YoY
• ▍Free cash flow −563,8% YoY
• ▍Net margin -69.0%

Revenue KRW 50.15B, −55,0% YoY; Operating income −122,4% YoY.

• ▍Revenue KRW 50.15B, −55,0% YoY
• ▍Operating income −122,4% YoY
• ▍Net income −128,0% YoY
• ▍Free cash flow −118,7% YoY
• ▍Net margin -22.2%

Revenue KRW 38.57B, −11,5% YoY; Operating income −158,3% YoY.

• ▍Revenue KRW 38.57B, −11,5% YoY
• ▍Operating income −158,3% YoY
• ▍Net income −111,6% YoY
• ▍Free cash flow −113,6% YoY
• ▍Net margin -60.2%

Revenue KRW 51.31B; Operating income -KRW 4.89B.

• ▍Revenue KRW 51.31B
• ▍Operating income -KRW 4.89B
• ▍Net margin -0.7%

Revenue KRW 48.35B; Operating income -KRW 2.13B.

• ▍Revenue KRW 48.35B
• ▍Operating income -KRW 2.13B
• ▍Net margin 6.1%

Revenue KRW 111.50B; Operating income KRW 46.83B.

• ▍Revenue KRW 111.50B
• ▍Operating income KRW 46.83B
• ▍Net margin 35.6%

Revenue KRW 43.59B; Operating income -KRW 8.44B.

• ▍Revenue KRW 43.59B
• ▍Operating income -KRW 8.44B
• ▍Net margin -25.2%

Revenue KRW 179.32B, −30,0% YoY; Operating income −255,6% YoY.

• ▍Revenue KRW 179.32B, −30,0% YoY
• ▍Operating income −255,6% YoY
• ▍Net income −296,6% YoY
• ▍Free cash flow −231,1% YoY
• ▍Net margin -34.5%

Revenue KRW 256.07B, +32,5% YoY; Operating income +222,3% YoY.

• ▍Revenue KRW 256.07B, +32,5% YoY
• ▍Operating income +222,3% YoY
• ▍Net income +178,4% YoY
• ▍Free cash flow +142,8% YoY
• ▍Net margin 12.3%

Revenue KRW 193.27B, +46,0% YoY; Operating income +133,1% YoY.

• ▍Revenue KRW 193.27B, +46,0% YoY
• ▍Operating income +133,1% YoY
• ▍Net income +86,8% YoY
• ▍Free cash flow +114,6% YoY
• ▍Net margin 5.8%

Revenue KRW 132.37B, +109,8% YoY; Operating income +229,7% YoY.

• ▍Revenue KRW 132.37B, +109,8% YoY
• ▍Operating income +229,7% YoY
• ▍Net income +176,0% YoY
• ▍Free cash flow +225,5% YoY
• ▍Net margin 4.6%

Revenue KRW 63.08B; Operating income -KRW 3.97B.

• ▍Revenue KRW 63.08B
• ▍Operating income -KRW 3.97B
• ▍Net margin -12.6%